by

Railway Industry in France

TGV 1

1. Industry Overview:

In France, one of the most popular transport modes is train.  SNCF is France’s national railway, providing high speed, overnight and local services in France and beyond into Spain, Switzerland and Italy.

>> http://www.tgv-europe.com/en

Types of Train in France:

01-TGV

02-Lunea

03-Teoz

04-TER

06-Intercites

Railway industry is quite similar to airline industry, as it sells seats for a transport from an origin to a destination. The price depends on journey, class, and date of booking. Thus, railway industry can be placed in Quadrant 2, where its service has variable prices for a predictable duration. This industry also has the appropriate characteristics to apply revenue management strategies. Those characteristics are:

– Inflexible capacity: the number of seats on a train is fixed

– Variable and uncertain demand: the demand is different depending on the time of day, day of week, origin-destination pairs, and purpose of travel

– Perishable inventory: the unoccupied seat cannot be inventoried, and the revenue of that seat is missed

– Low marginal cost and high production cost

– Product can be sold in advance

– Heterogeneous customers with different segments, varying by age, purpose of travel, independent or group, etc.

However, there are some differences that make the revenue management of railway industry is little bit different than that of airline industry.

– More difficult to forecast demand and to have the accurate number of travelers on a service: no check-in procedure, open tickets (rail pass) generally allow passengers to travel on any rail service, walk up tickets are very common (a large number of passengers purchase their tickets on the day from the station)

– Less difficult to deal with overbooking: passengers are often allowed to stand during train journeys hence increasing capacity beyond the number of seats

———

 2. Space

Railway industry defines space implicitly.

Normally, a train has two classes: Economy (2nd Class) and Comfort (1st Class). The seating options and services are different for each class. The price is same for different seating options in a class.

 Economy Class:
01-Class2
 Comfort Class:

01-Class 1

Trains, especially TGV has “TGV bar”, which provides a wide selection of meals and sweet snacks available for purchase. Additionally, the TGV bar offers films on DVD, magazines, games for children, Paris Metro tickets, even USB sticks for purchase. There is also a rolling snack cart that comes to the customers’ seats.

01-TGV Bar

For additional revenue, TGV offers Premium service includes 1st Class seat, meal service, and access to the TGV lounge at the train stations.

Personally, I would charge difference fares for different seating options in each class. A group will want to pay more to have a Club 4 seat. A couple will want the Duo seat or Club 2 seat. And an individual traveler will want a solo seat. As the number of seat are fixed, we can charge for each option, rather than a “first comes first served” policy.

I’m also thinking about a mini-cinema on train, especially overnight train. Normally, the overnight train have load factor less than 80%, so the train can use one car to transform into a mini-cinema with a projector and a screen. When the train is busy, the car will be transformed in normal guest car again.

——

3. Time

Railway industry defines time implicitly.

Although the duration of a journey is determined, the railway industry sells a journey rather than specifically selling time. In addition, there may be issues that cause the increase/decrease in duration of the journey.

However, the railway industry also tries to sell time explicitly with the Rail pass. With Rail pass, customers can have unlimited travel on the national rail network of France for a fixed number of days. The choices are 3, 4, 5, 6, 7, 8 or 9-day pass within a one-month period. Travel days may be used consecutively or non-consecutively.  Thus, the fare becomes rate-per-day, not anymore rate-per-trip.

>> http://www.raileurope.com/rail-tickets-passes/france-pass/index.html

The industry can sell time explicitly by providing Rail pass with weekly or monthly unit. However, I think it will not be effective as it makes the demand forecasting much more complicated.  Half-day unit won’t make sense as a trip is normally more than 3 hours.

——–

4. Price

Tickets can be purchased 60 to 120 days in advance depending on the route.

Ticket discounts are based on advance purchase, availability, and certain restrictions. Everyone is eligible to receive discounted fares by purchasing an Economy or Comfort class ticket in advance. Youth and seniors can enjoy specific discounts as well. Discounted tickets are available for youth (under 26 of age), seniors (age 60 and over) and children (generally ages 4-11) but should be verified with each product.

Price at 1 week before departure
01-Price-1st class-10AM-1wk

Price at 2 weeks before departure

01-Price-1st class-10AM-2wk

Price at 3 weeks before departure

01-Price-1st class-10AM-3wk

Price at 4 weeks before departure

01-Price-1st class-10AM-4wk

Normally, prices are reduced for 1or 2 week-advanced purchase, slightly reduced for 3-week-advanced purchased, and stay same for more-than-4-week-advanced purchase.

The physical rate fences are the classes:
01-Booking-Class

 

The non-physical rate fences are age, season ticket, and loyalty

01-Booking-Rate Fences-1

01-Booking-Rate Fences-2

01-Booking-Rate Fences-3

01-Booking-Rate Fences-4

As the rate fences are now already too sophisticated, I would rather consolidate these fences than create new fences to confuse customers.

 

(-Thao Ly)

——–

References:

http://www.raileurope.com

http://www.tgv-europe.com

http://www.sncf.co.uk/

Amstrong and Messneir, 2010. Railway revenue management: Overview and Methods

Schroeder, Braun, and Schnieder. Revenue management in the railway industry

 

182,608 thoughts on “Railway Industry in France”

  1. I recently read an article about the advancements in the railway system, and it got me thinking about how technology is evolving in various sectors. Just like how our railways are becoming more efficient and interconnected, I’ve noticed the same trend in the gaming industry. For instance, the Carx Streets Apk that provide the mod version of Carx Street has been gaining popularity for its realistic street racing experience. It’s fascinating to see how technology is pushing boundaries, whether it’s in transportation or entertainment!

  2. I am thankful to you for giving me cannabis product sites. 1 gram disposable I will definitely be coming back here more often. Thanks for taking the time to share this fantastic post with us.

  3. The TikTok shop has exploded, and online businesses have a lot to gain. TikTok has over 1 billion active users and is an excellent way to increase exposure , as well as sales . Servicebuyusa.com offers TikTok accounts that allow companies to easily promote their products. TikTok offers special features that allow them to reach more people.

    Details of our Tiktok Shop account :

    ♦ 100% US/UK Verified Tiktok Shop Account
    ♦ Number Verified & Access
    ♦ Email Verified and Access ID/Passport/Driving Licence Verified
    ♦ US SSN Verified Full
    ♦ EIN Verified
    ♦ Check your business details
    ♦ Shop Verified
    ♦ Tiktok business account verified
    ♦ Verification of Documents
    ♦ Address Verification
    ♦ Order Now & Receive Your Products Immediately
    ♦ Replacement Guarantee
    ♦ Customer Support Available 24/7
    ♦ Money Back Guarantee

    ♠ Contact US ♠
    Email: servicebuyusa@gmail.com
    Skype: SERVICEBUYUSA
    Telegram: @officialservicebuyusa
    Whatsapp: +1 (520)344-4079

  5. It was very useful to be the part of them and by reading their mentioned guidance! You should also take a survey at this site it is great and will be very helpful! sensa838

  6. Casacourse provides a diverse range of courses, from business to technology, ensuring learners find relevant knowledge to advance their careers effectively Read more.

  7. I want to introduce a very interesting game, this game is very popular, if you play you will not only get a sensation and be entertained but you will also make a profit, for further information just visit this website https://koniciwa.company/

  10. It was very useful to be the part of them and by reading their mentioned guidance! You should also take a survey at this site it is great and will be very helpful! bandar toto macau

  12. Thanks for the tips on credit repair on this amazing web-site. What I would offer as advice to people will be to give up this mentality that they may buy at this point and shell out later. As a society all of us tend to do this for many things. This includes trips, furniture, and items we’d like. However, you have to separate a person’s wants from all the needs. While you are working to raise your credit score make some trade-offs. For example you possibly can shop online to economize or you can look at second hand suppliers instead of high priced department stores regarding clothing. slot

  14. Guest Post They contribute to a dynamic exchange of ideas, inspiring readers to explore diverse viewpoints and engage critically with contemporary issues.

  16. Thanks for the nice blog. It was very useful for me. I’m happy I found this blog. Thank you for sharing with us,I too always learn something new from your post. mazda surabaya

  17. Jollibee Burger Menu is renowned for its delicious and diverse offerings that cater to a wide range of taste buds. Whether you’re a fan of classic flavors or adventurous combinations, Jollibee has something special for everyone. The iconic Yumburger, with its savory beef patty and unique special dressing, is a favorite among many.

  18. Cetak sticker terdekat

    Icon Printings – Digital printing terdekat 24 Jam di Jakarta Timur, Melayani Print dengan pengiriman data secara online. Tempat pring fotocopy terbaik di Jaktim.

  20. The Hudson Weekly is a news source on topics of Business, Fintech, Lifestyle, Entertainment, Arts, Music, Sports, Fashion, Health, Travel, Environment, Science, Gadgets, Telecom, Cybersecurity, Apps, Auto, Gadgets, and Crypto.
    invictus growth partners

  23. The HAS-BLED score calculator on the Fertilace website is designed to estimate the risk of major bleeding in patients with atrial fibrillation who are undergoing anticoagulation therapy. It takes into account factors such as hypertension, renal and liver function, history of stroke, prior major bleeding, labile INR, age over 65, and drug or alcohol use. has bled score calculator

  27. Awakened Magazine, we envision a world where everyone is awakened to Love. We believe you come from Love, are healed by Love, and express yourself most fully when you love yourself and others.

    Our mission is to foster a global awakening to this Love by sharing the wisdom and experiences of those dedicated to making a positive impact in our world. By amplifying the voices of visionaries, spiritual teachers, holistic practitioners, and changemakers, we seek to catalyze healing and transformation on our planet.

  36. 飲み会・合コンspay158ゆずちゃん【ハイライトムービー】 ※VR作品・またはダイジェストムービーがない場合は表示されません。 今すぐフルバージョンを鑑賞する 【ヤリマンビッチJD】【伝説の合コン荒し5人組が1人】【1人でも紛れ込んだらそのサークルはヤリサーと化す】【10の性技と10のフ…2024年7月7日飲み会・合コンspay159ねんね＆ありす＆もも＆ましろ＆ゆず【ハイライトムービー】 ※VR作品・またはダイジェストムービーがない場合は表示されません。 今すぐフルバージョンを鑑賞する 伝説のヤリマンビッチ5人が大集結！世界一エロくて、やらしくて、いい意味で下品な飲み会の記録をここで大公開。まず伝説のヤリ…2024年7月7日盗撮・のぞきspay160黒川さん【ハイライトムービー】…
    素人ちゃん

  37. HudsonWeekly is a followable publication that covers a variety of topics, including: Financial, Blockchain, Technology, Entertainment, Lifestyle, Arts, Health, Sports, Cybersecurity.
    Invictus Growth Partners

  38. sensa69 situs game online rekomendasi player indonesia, situs terpercaya dan jelas aman untuk pendaftaran dan terjamin kenyaman player saat permainan berlangsung.

Leave a Reply

Your email address will not be published. Required fields are marked *